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FIFO Method: Equivalent Units & Costs

The document provides information about work in process for a mixing department during June, including beginning inventory, units started and completed, percentage completed for each, and costs for materials and conversion. It asks to 1) determine equivalent units for June, 2) compute costs per equivalent unit, 3) determine costs of ending work in process and units transferred, and 4) prepare a report reconciling costs.

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Andy Cheang Wei Jun
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30 views1 page

FIFO Method: Equivalent Units & Costs

The document provides information about work in process for a mixing department during June, including beginning inventory, units started and completed, percentage completed for each, and costs for materials and conversion. It asks to 1) determine equivalent units for June, 2) compute costs per equivalent unit, 3) determine costs of ending work in process and units transferred, and 4) prepare a report reconciling costs.

Uploaded by

Andy Cheang Wei Jun
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

PROBLEM 4S8B Equivalent Units, Cost per Equivalent Unit, Applying CostsFIFO Method

CHECK FIGURE (4) Ending work in process: $40,800

Honeybutter, Inc., manufactures a product that goes through two departments prior to completion. The following information is available about work in the first department, the Mixing Department, during June. Units Work in process, beginning......... Started into production............... Completed and transferred out... Work in process, ending.............. 50,000 470,00 0 450,00 0 60,000 Percent Completed Material Conversio s n 60% 30%

70%

20%

Cost in the beginning work in process inventory and cost added during June were as follows for the Mixing Department: Materia ls $24,50 0 $377,6 00 Conversi on $9,500 $274,20 0

Work in process, beginning......... Cost added during June...............

The company uses the FIFO method to compute unit product costs. Required: 1. Determine the equivalent units for June for the Mixing Department. 2. Compute the costs per equivalent unit for June for the Mixing Department. 3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next department in June. 4. Prepare a report that reconciles the total costs assigned to the ending work in process inventory and to the units transferred out with the costs in beginning inventory and costs added during the period.

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